Thinking about starting your own business in 2009?

Published
7:00 pm EST, Tuesday, January 20, 2009

The rewards of starting and growing a successful business are almost too numerous to mention. It's incredibly satisfying to watch a business grow.

You will be constantly stimulated by finding unique solutions to daily challenges. The opportunity to make major contributions to other businesses and the community are just a few of the rewards. In 2006, The U.S. Chamber of commerce reported that of the approximately seven and a half million millionaires in the United States, most accumulated their wealth through entrepreneurship.

Recessions can be a opportune time to start a business or expand a business for a number of reasons.

1. Slow times provide a great opportunity to strategize and plan for future growth opportunities. In these times extra planning and strategizing can greatly reduce unnecessary and costly mistakes.

2. Many local banks are willing to lend. They are looking for ideal candidates. The better your plan, the more likely you will receive the terms you want. (More on this in my next column when I share a report from our panel of local experts.)

3. Increased talent pool. You will find more highly skilled professionals available for hire and committed to making sure a new venture succeeds.

Guidelines to consider before going out on your own:

Do you have enough cash to support yourself for at least 6-12 months before your business prospers?

It's possible people will be lining up for your service the first day you open for business. More likely, it will take time to establish yourself, to build trust and a reputation for outstanding service. There is no need to read further until you can answer this question with an unequivocal absolute, Yes.

I have seen far too many talented individuals invest much if not all of their resources into a business and fail simply because they could not support themselves for two more months. If you don't have the resources that allow you to go at least six months without a paycheck please reconsider this as being the best time to start a business.

Why do you want to start a business?

When I ask this question to any audience of would-be entrepreneurs the answer is often "I want freedom," "I'm tired of the shackles the corporate world put on me," "I want to create my own destiny."

Freedom is the second reason so many bright, talented individuals literally work themselves out of a business. Freedom is the kiss of death for new entrepreneurs.

Successful business owners often appear to have more freedom than many salaried professionals. When we hear that Mary Smith who owns our favorite restaurant is going to Europe for three weeks were envious. We quickly forget that Mary was working seven days a week for the last three months.

To be successful in your own business you will have far less freedom than you had in the corporate world. In fact your clients are facing greater urgency than ever before. In my prior columns I quoted such successful CEO's as Bob Moore of Moore Rehabilitation and Gerry Boyle of Commodore Construction, sharing their commitment for greater urgency in exceeding client expectations. Your clients will expect more from you than they would have two years ago.

Who will be on your advisory board? Don't even think about being the Lone Ranger. Why try to roll boulders uphill by yourself ? It will be more rewarding to succeed in business with the guidance and support of others.

In the past many great inventions and businesses were started by one individual in a garage or a kitchen. Today the vast majority of successful businesses are built through collaboration. You must surround yourself with people you can depend on to add insight and provide guidance.

Coaches are not just for professional athletes. Every business professional needs a coach.

Take the time to identify and recruit successful business owners you know and respect.

Ask them to work with you and share their guidance on how to build a successful business. Remember, that successful people like to help motivated people succeed.

Ask for help.

Michael W. O'Reilly, regional director for Paradigm Associates has been an owner and a partner in three businesses over the last 20 years. O'Reilly and his partners work with privately held businesses to develop and execute practical strategies and systems that make businesses more valuable to future owners. O'Reilly can be reached at www.paradigmassociates.us or (203) 524-2776. He welcomes your feedback and questions.

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